Who establishes the advertising programs for Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ld disparage Franchisor or its Affiliates, or impair, damage or harm the name, reputation, or goodwill of the Marks, System and/or the "HCK Hot Chicken" brand.
8.2 Local Advertising and Promotion.
8.2.1 In addition to the Brand Fund Contributions, Franchisee must spend one percent (1%) of annual Gross Sales on local advertising each year ("Local Advertising Requirement"). If Franchisee fails to spend the Local Advertising Requirement, Franchisee will be required to pay the difference to us, or if established, the Brand Fund. Franchisee agrees, at its sole cost and expense, to issue and offer such rebates, giveaways, and other promotions in accordance with advertising programs established by Franchisor, and further agrees to honor the rebates, giveaways, and other promotions issued by other HCK Hot Chicken franchisees under any such program, so long as such compliance does not contravene any applicable law, rule, or regulation. Franchisee will not create or issue any gift cards/certificates, and will only sell gift cards/certificates that have been issued or sponsored by Franchisor and which are accepted at all HCK Hot Chicken Restaurants, and Franchisee will not issue coupons or discounts of any type except as approved by Franchisor.
8.3 Brand Fund.
8.3.1 In accordance with Section 4.2 of this Agreement, Franchisee's Brand Fund Contribution shall be applied to the Brand Fund. Franchisor will use the Brand Fund for national, regional, or local advertising, public relations or promotional campaigns or programs designed to promote and enhance the image, identity, or patronage of franchised, and Franchisor-owned (including Affiliate-owned) Restaurants. Such expenditures may include: (a) the costs of maintaining, administering, directing and preparing the secret shopper initiatives and rewards program (this program will include cash rewards paid to the highest scoring restaurants that Franchisor suggests be distributed to franchisee's employees as bonuses at the applicable restaurants); (b) creative development, production and placement of print advertisements, commercials, musical jingles, decals, radio spots, audio advertising, point of purchase materials, direct mail pieces, literature, outdoor advertising, door hangers, electronic media advertisements, and other advertising and promotional material; (c) creative development, preparation, production and placement of video, audio and written materials and electronic media, (d) to purchase artwork and other components for advertising;
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchisor establishes the advertising programs. Specifically, franchisees must adhere to advertising programs set by Hck Hot Chicken. Franchisees are also required to spend 1% of their annual gross sales on local advertising. If a franchisee fails to meet this local advertising requirement, they must pay the difference to Hck Hot Chicken or the Brand Fund, if one is established.
Furthermore, franchisees must use only approved advertising material provided by Hck Hot Chicken and display it according to the franchisor's policies. Any advertising materials created by the franchisee require prior written consent from Hck Hot Chicken, which must be granted or denied within 15 days. Unauthorized use of marketing or advertising materials results in a $500 fee per occurrence, contributed to the Brand Fund at Hck Hot Chicken's discretion. All advertising materials created by the franchisee and approved by Hck Hot Chicken become the sole property of the franchisor.
This level of control over advertising is common in franchising, allowing Hck Hot Chicken to maintain brand consistency and ensure quality across all locations. However, it also means franchisees have limited autonomy in their marketing efforts and must adhere strictly to the franchisor's guidelines. The Brand Fund is used for advertising, public relations, and promotional campaigns at the national, regional, or local level to enhance the image of Hck Hot Chicken restaurants.